SVKMS NMIMS Mukesh Patel School of Technology Management & Engineering MBA - (Tech) Sub: Investment Banking - (Elective)

Periods per week Lecture Practical Tutorial Evaluation system Theory Examination Term Work Trimester - XIV
Code :

2(1.5 Hours of each) ----Hours Marks 2 50

--50 Objectives: T provide fundamental understanding of the role of Investment Banks and how they operate. To provide framework for analysis of the various businesses of an Investment Bank. To provide a framework of reference for future professionals in the Investment Banking Industry. Prerequisite: Nil Detailed Syllabus Unit 1 Topics Overview of the Investment Banking: Meaning, Services/functions of investment banking Regulatory and structure of investment banking Money Markets Structure and role of money markets in India and globally New money market instruments - Call money, commercial paper, term money, notice money, treasury bills, gilt edged securities, certificate of deposit, repos, BRDS, IBPS etc. Derivatives (FRA, IRS, IRF, Swaption, CAPS, Floors and Collars) Regulatory authorities, guidelines and regulations for money market Capital Markets Significance of Indian and Global capital markets Capital markets v/s money markets, Market players investors and companies Primary and secondary markets in India and abroad Current developments Procedural aspects and Due diligence of prospectus or letter of Duration (Hr) 3

offer Pre-issue decision making and management SEBI guidelines for public issues Security laws / regulatory framework for governing Indian capital markets 4 Debt and credit market Structure and role of global bond market Types of debt instruments Bond pricing and yield - Clean and dirty price, YTM, modified YTM, Yield to call, current yield, realized yield, horizon analysis, bond written, prices and their movements and bond theorems Risks in fixed income securities, classical theory of interest yield curve, yield spread, Z theoretical determinants of shape of yield curve, terms structure hypothesis, systematic and unsystematic risk in bond Concept of duration (Macaulay, Modified, Effective), duration wandering, duration swift, convexity interest rate risk, price volatility and hedging risk, value at risks Bond management strategy active, semi-active and passive strategy, asset liability optimization strategy and maturity matching bond swap Credit derivatives-Concept, role and structure, types-CDS, TRS, CSO, CLN, CDO Pricing of various fund raising instruments NAV method, book-building, book-building through on-line IPO, reverse book-building, eligibility to issue securities, fixed v/s book-building process, ETF its varieties and guidelines International Markets Instruments, Players Debt instruments GDR, ADR, IDR, ECB, FCCB, Various types of bonds, their characteristics, advantages and disadvantages Procedure for issue of instruments and their cost Off-shore fund arrangements, Loan syndication TOTAL HRS. Prescribed Text: Financial Institutions and Markets L.M. Bhole Tata Megraw Hill References : Capital market management V.A. Avandhani Himalaya Publishing House A Manual on Merchant banking J.C. Verma Bharat Law House 9

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 SEBI Guidelines Nabhi Publications Merchant banking Principles and Practices H.R. Machiraju Financial markets and Services Garden and Natrajan HPH

Internet References www.rbi.org.in www.sebi.gov.in Term Work: Case Studies / Assignments / Class Tests/ Project / Presentation / Role Play